First-Time Home Buyer Programs
Guest post: Ray Williams.
There seems to be a lot of misleading and lack of information out there regarding first-time home buyer programs. As an experienced mortgage professional, when I searched “first time home buyer programs”, I found lots of information. The problem with the information that I found was that there really weren’t any straight answers. Even as an experienced mortgage professional, I was confused. Therefore, I can only imagine as a first-time home buyer how you may be confused as well.
I noticed there were more ads than any actual helpful article and the articles I did find didn’t explain and/or answer the search. Again, being a mortgage professional I was able to filter through the ads and scams. There just really didn’t seem to be any good, solid answers or information regarding what first-time home buyer programs are available.
Being a first time home buyer it is already overwhelming and confusing. I’m sure you have many questions and I’m sure you have been searching to find out more. The web is full of articles, blogs, advice forums, etc. How do you know when you are getting the straight answers and how do you decipher what is factual information? Typically if it sounds too good to be true, it is.
I am going to give you some information that will help you decipher what is factual regarding first-time home buyer programs. First and foremost, FHA loans are not only for first time home buyers.
Here is a list of programs that are for the first time home buyers only*:
- CHFA- FirstStep & First Step Plus, HomeAccess & SectionEight*– not all of CHFA’s programs are for first-time home buyers
- City & County Specific Down Payment Assistance Programs- see the complete list here.
- The Mortgage Credit Certificate (MCC)– This is not a loan, this is an available tax credit for first-time homebuyers and veterans.
Down payment assistance programs such as Metro Mortgage Assistance (MMA) and most of CHFA’s programs (with exception to the programs listed above) are available to all, you don’t have to be a first-time home buyer to qualify for the program.
Many lenders/banks will advertise FHA loans as a first-time home buyers loan. The reason for this is because FHA allows for a lower down payment (3.5%) and lower credit scores. Although, keep in mind that you can put as little as 3% down with a Conventional loan and this is also not first-time home buyer specific.
As I stated previously, it is hard to decipher what is factual information on the web. When in doubt, call. A quick phone call is all it takes to get a straight answer.
If you need help and would like more information, give us a call.